Focus Gold Corporation Letter of Intent Signed
GORDON F. LEE, CEO, DIRECTOR
Apr 11, 2013, 09:00 ET
NEWPORT BEACH, Calif., April 11, 2013 /PRNewswire/ -- Focus Gold Corporation (OTCQB: FGLD) (the "Company" or "FGLD") is pleased to announce that it has entered into a Letter of Intent to acquire Carbon Energy Handling, Inc., an Arizona corporation ("CH") from it's owners, including the Company's CEO, Gordon F. Lee. A copy of the Letter of Intent was filed with the Company's Form 8-K on April 8, 2013. CH is a privately held logistics company, specifically focusing on coal properties in the United States, Canada, and Mexico. Subject to a definitive agreement, the consideration for this acquisition will be (i) One Hundred Million (100,000,000) shares of FGLD's common stock and (ii) a 5 Year Common Stock Purchase Warrant to acquire One Hundred Million (100,000,000) shares of FGLD common stock at Two Cents ($.02) per share.
CH's main focus is in southern Montana, in the newly reopened Bearcreek black field coal deposit near Red Lodge, Montana. This area covers as much as 300,000 mineable acres, reaching as far north as Roundup, Montana. These coal seams have been tracked by the USGS and identified at a minimum of 10 Billion tons of high-grade steam coal in place. The Bearcreek steam coal (11,600 BTU) is of the highest average heat content per lb. in the northwest, making it perfect for overseas shipments, as it provides more efficiency in generating electricity per ton consumed, thereby reducing overall transportation costs. The management team of CH has devoted much time and effort to bring long term Purchase Contracts to the point of final negotiations with several large international entities.
CH also provides the North American side logistics to get the coal to its international markets, getting it loaded on the main railroad lines and transported to a predetermined ocean port, and then for pick up by 180k ton barges. These barges use a conveyor system that weighs and assays the load, to calculate and bill for payment, by wire, before the coal leaves the North American Port, making the overall procedure highly efficient.
Additionally, CH focuses on providing remedies and solutions for existing U.S. power plants, to help them remain compliant with new EPA standards, which are much stricter. At this point, over 200 of the 724 U.S. Coal Fired Power Plants have been mandated to upgrade their scrubber systems. These Coal Fired Power Plants have a choice, spend an average of $50 mm in upgrades, to reduce carbon emissions or be closed down completely. CH offers several less costly solutions to the Power Plant operators.
"We are very excited about CH and its prospect, as CH brings management expertise in a variety of areas, including capital markets, international finance and corporate development" says Focus Gold's CEO, Gordon F. Lee.
Safe Harbor Statement: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
Gordon F. Lee
email: [email protected]
SOURCE Focus Gold Corporation
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